CAIE A-Level Business 4.3.1 Capacity Utilisation

CAIE A-Level Business 4.3.1 Capacity Utilisation
Cambridge International AS & A Level Business 9609 syllabus for exams in 2026, 2027 and 20282026–2028

Practise calculating capacity utilisation from output and maximum capacity and analysing how operating below or above capacity affects efficiency, quality, cost and customer…

How this is tested

  • calculate utilisation as actual output ÷ maximum possible output × 100 and retain the percentage
  • analyse below-capacity operation through higher unit cost, idle resources or scope for demand growth
  • analyse over-capacity operation through delays, pressure, quality risk or the need for investment

Question 1

Question 1(b)(i)

(a)

Refer to Table 1.1. Calculate NS's capacity utilisation in 2024.

[ 3 ]

Question 1(b)(ii)

(b)

Explain one possible disadvantage to NS of high capacity utilisation.

[ 3 ]